How trade has impacted the economic condition of India?

India is a developing country where their economy has suffered many changes in the past decade. Being involved in trades with other countries has made their economy grow faster and become a nation more globalized. Moreover,  they are in a process of restructuring their economy in order to elevate their position in the world. 

India has with a very high population, therefore, it is very important for them to be economically interdependent in order to sustain themselves, and for this, they must be involved in trade surplus policies.

Globalization also means foreign companies investing in new territories. India has all the potential to receive multinational companies, adding this a positive effect on their economy and labor situation. Although, several companies already have plants in India.

India still adopted a very restrictive policy as regards foreign equity, capacity expansion for economies of scale and private participation in infrastructure and other strategic sectors (Singh, 2012).

To conclude, trade can positively impact India if they become more open to new markets. For example, they can start by reducing import duties and restriction, and foreign investment barriers. India has all the potential and comparative advantage of multiple resources in order to gain from trades.

European Union Agreement

This agreement was formed with the idea of an economic corporation where all countries, who are involved in the agreement, can be economically interdependent and avoid all kinds of conflicts between each other.

In this agreement there are 27 European countries participating and based on the same continent.

With the European Union, all these countries have increased their stability, prosperity and peace between each other, their standard life of work and personal living has been easier throughout the European continent, and they also have an advantage of sharing the same Euro currency which makes it easier to do tourism, or business such as importing or exporting any kind of good or services with less policy. The European Union key objectives and values is to ensure their democracy, human dignity and right, freedom and equality.

This Economic Union agreement will continue to grow in a democratic and transparent way, with the objective to gain more power to the European Parliament, being authentic to their laws, and increasing the amount of countries to participate. The EU is also trying to sustain economic growth by investing in transportation, energy and research, while also seeking to minimize the environmental impact of further economic development.

Trade Policies for Developing Nations

Trade policies are healthy regimens of trade surplus.  Developing countries are always searching for a way to increase their economy by exchanging product and services with developed countries. There has to be policies in order to make sure that these developing countries build a balanced and structure industry and in a process that will certify an economic growth and benefits. 
If a developing country wants to become more industrialized and be economically interdependent,  they must be involved in trade policies.

For example, Panama is a developing country whose economy has grown significantly in the past year.  Panama is a member of WTO since 2007 and maintains an essentially liberal trade and investment regime, characterized by relatively low tariffs and few non-tariff barrier.

Panama's service-oriented economy acts as an international hub for activities such as maritime transport, distribution services, and banking. In contrast, the production of a number of agricultural and manufactured goods receives assistance through border protection and fiscal incentives (WTO, 2012).

As well, trade policies are methods to protect the nation from dumping activities, subsidies and other types of trade barriers.

To conclude, developing nation must be involved in effective trade policies in order to protect domestic productions, take advantages of developed countries production and become economically interdependent.

Trade War Between China and U.S.

When there is war or a dispute between industrialized or developing nations, due to an increase or decrease on tariff, the most affected are the companies who depends on their daily import/export of products.

On this case, we have the example of China Chicken Market vs. U.S Car Manufacture Industry were both industries have been harmed due to a competition of gaining market share, power and revenue.

We have to understand the value of antidumping as a process that protects domestic markets. We usually see that China has mayor impact in U.S. market and this is because of a lower cost of labor of their products, and consequently, a huge increase in the final cost to U.S. consumer. This in when antidumping processes must be applied in order to protect domestic producers and consumers.

No nation can live in economic isolation; there must be a multilateral negotiation in order to reduce any percussions and increases on tariffs. Both countries, China and U.S., have an absolute advantage on their productions, and they must consider the best option for their consumers and no practices that affect internal consumption should be implemented., market share and revenue can also be obtained this way.

Where there are multilateral agreements between nations and these are respected and applied correctly without utilizing dumping actions, countries will increase their profits by taking completely absolute and/or comparative advantage of their trades.